Rex Energy Corporation – Amended Plan of Liquidation Confirmed

October 16, 2018 – The Court hearing the Rex Energy Corporation case issued an order confirming the Debtors’ Amended Plan of Liquidation [Docket No. 1011]. The Debtors shifted to a Plan of Liquidation from a Plan of Reorganization after the sale of substantially all of the Debtors’ assets for $600.5 million to PennEnergy Resources. As previously reported [Docket No. 863], “On July 25, 2018, the Debtors filed the Motion seeking the Bankruptcy Court’s approval of (a) adequacy of…Disclosure Statement for Plan of Reorganization (Docket No. 5320)…The Original Plan, as described in the Original Disclosure Statement, included a ‘toggle’ feature, toggling from a sale-focused plan to a debt-for-equity plan based on the outcome of the Debtor’s ongoing sale process. Specifically, the sale-based trajectory in the Original Plan provided the framework for an organized liquidation of the Debtors following entry of an order approving the sale of the Debtors; assets to a third party and the consummation of such sale….On August 31, 2018, the parties focused efforts in connection with the sale of the Debtor’s assets culminated in the entry of an order (Docket No. 8410 (the ‘Sale order’) approving the sale of substantially all of the Debtors’ assets to PennEnergy Resources, LLC. Upon entry of the Sale Order, the Debtors’ path forward to concluding these cases crystalized: the Debtors would follow the sale-based path in the Original Plan. To refine the means for concluding these cases and supplement the framework already set forth in the Original Plan, the Debtors filed the Amended Plan of Liquidation….and the Amended Disclosure Statement for Amended Plan of Liquidation.”

BankruptcyData has prepared a more comprehensive summary of the Plan (please see the pdf attachment below).

Also as previously reported in respect of claims, classes, voting rights and projected recoveries:

Class 1 (“Priority Claims”) are considered unimpaired and are deemed to accept/ not entitled to vote. The projected approximate amount of allowed claims/interests is $20-$25 million and projected Plan recovery is 100%.

Class 2 (“Prepetition Second Lien Claims”) are considered impaired and are entitled to vote. The projected approximate amount of allowed claims/interests is $615-$620 million and projected Plan recovery is 26% -28%.

Class 3 (“Other Secured Claims”) are considered unimpaired and are deemed to accept/not entitled to vote. The projected approximate amount of allowed claims/interests is $0-$500,000 and projected Plan recovery is 100%.

Class 4 (“General Unsecured Claims”) are considered impaired and are deemed to reject/ not entitled to vote. The projected approximate amount of allowed claims/interests is $0 – $5 million5 and projected Plan recovery is 0%.

Class 5 (“Intercompany Claims”) are considered impaired and are deemed to reject/ not entitled to vote. The projected approximate amount of allowed claims/interests is N/A and projected Plan recovery is N/A.

Class 6 (“Section 510(b) Claims”) are considered impaired and are deemed to reject/not entitled to vote. The projected approximate amount of allowed claims/interests is $0 and projected Plan recovery is 0%.

Class 7 (“Interests”) are considered impaired and are deemed to reject/ not entitled to vote. The projected approximate amount of allowed claims/interests is N/A and projected Plan recovery is N/A.

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